LOBLAW COMPANIES $47.66 (Toronto symbol L; Shares outstanding: 283.1 million; Market cap: $13.6 billion; TSINetwork Rating: Above Average; Dividend yield: 2.0%; www.loblaw.ca) is testing a new store format in Calgary that is much smaller than its other supermarkets.
This store, called The Box by No Frills, is just 10,000 square feet, compared to 25,000 square feet for its regular stores.
Smaller stores like this would help Loblaw expand in urban areas. They would also help it compete with non-traditional food sellers, such as drug stores and convenience stores. To boost traffic, the new stores will highlight $1 items in most aisles.
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